Borrowers urged to always check rates and review options
The average of the lowest fixed rate mortgages has now dropped by more than 0.50% since the beginning of November, according to mortgage adviser L&C Mortgages.
Analysis of its remortgage tracker data revealed that the average of the low LTV two- and five-year remortgage rates from the top 10 lenders has fallen as market expectation for rates has eased since the spike caused by the mini budget.
These rates hit 5.90% and 5.67% respectively at the beginning of the month, but have already dropped to 5.38% and 5.07% respectively. At the same time, L&C noted an increase in standard variable rates, with the top 10 average now at 6.30%.
The mortgage adviser is urging customers to take advantage of its free rate check service to check whether there could now be a better rate on offer than just a few weeks ago. It added that borrowers must also take account of fees and consider that using a no fee adviser can add additional savings over a traditional, fee-charging broker.
“The reduction in fixed rates will be welcome news to borrowers reeling from the impact of the mini budget,” David Hollingworth (pictured), associate director at L&C Mortgages, commented. “Although base rate is expected to continue its climb, falling fixed rates will offer squeezed borrowers the chance of some budgeting certainty against an uncertain backdrop.
“Homeowners could already make substantial savings compared with the rates that were on offer only a few weeks ago following the mini budget. Those that sought to grab a rate in the panic should review their rate to make sure it still offers the best option now that the market is shifting.
“Securing a better rate now doesn’t close the door to reviewing the options, and good advice should help keep borrowers abreast of change without incurring additional cost.”
